Question 1

Capital goods are

Accepted Answer

A) a type of intermediate good. 
B) final goods,because they are not used up during a given year. 
C) produced in the same year as the related final good,whereas intermediate goods are produced in different years. 
D) produced in one year,whereas final goods are produced over a period of more than one year. 
A) a type of intermediate good. 
B) final goods,because they are not used up during a given year. 
C) produced in the same year as the related final good,whereas intermediate goods are produced in different years. 
D) produced in one year,whereas final goods are produced over a period of more than one year.

Question 2

GDP differs from GNP because

Accepted Answer

A) GDP = GNP - net factor payments from abroad. 
B) GNP = GDP - net factor payments from abroad. 
C) GDP = GNP - capital consumption allowances. 
D) GNP = GDP - capital consumption allowances. 
A) GDP = GNP - net factor payments from abroad. 
B) GNP = GDP - net factor payments from abroad. 
C) GDP = GNP - capital consumption allowances. 
D) GNP = GDP - capital consumption allowances.

Question 3

The uses-of-saving identity shows that if the government budget deficit rises,then one of the following must happen.

Accepted Answer

A) Private saving must rise,investment must fall,and/or the current account must fall. 
B) Private saving must rise,investment must fall,and/or the current account must rise. 
C) Private saving must rise,investment must rise,and/or the current account must fall. 
D) Private saving must fall,investment must rise,and/or the current account must rise. 
A) Private saving must rise,investment must fall,and/or the current account must fall. 
B) Private saving must rise,investment must fall,and/or the current account must rise. 
C) Private saving must rise,investment must rise,and/or the current account must fall. 
D) Private saving must fall,investment must rise,and/or the current account must rise.

Question 4

Inventories include each of the following except

Accepted Answer

A) unsold finished goods. 
B) goods in process. 
C) raw materials held by firms. 
D) office equipment. 
A) unsold finished goods. 
B) goods in process. 
C) raw materials held by firms. 
D) office equipment.

Question 5

The Boskin Commission concluded that the CPI overstates increases in the cost of living by ________ percentage point(s)per year.

Accepted Answer

A) Less than 1 
B) 1 to 2 
C) About 3 
D) Over 4 
A) Less than 1 
B) 1 to 2 
C) About 3 
D) Over 4

Question 6

If an American construction company built a road in Kuwait,this activity would be

Accepted Answer

A) excluded from U.S.GNP. 
B) fully included in U.S.GDP. 
C) included in U.S.GNP only for that portion that was attributable to American capital and labor. 
D) included in U.S.GDP but not in U.S.GNP. 
A) excluded from U.S.GNP. 
B) fully included in U.S.GDP. 
C) included in U.S.GNP only for that portion that was attributable to American capital and labor. 
D) included in U.S.GDP but not in U.S.GNP.

Question 7

The Bigdrill company drills for oil,which it sells for $200 million to the Bigoil company to be made into gas.The Bigoil company's gas is sold for a total of $600 million.What is the total contribution to the country's GDP from companies Bigdrill and Bigoil?

Accepted Answer

A) $200 million 
B) $400 million 
C) $600 million 
D) $800 million 
A) $200 million 
B) $400 million 
C) $600 million 
D) $800 million

Question 8

If nominal GDP for 2009 is $6400 billion and real GDP for 2010 is $6720 billion (in 2005 dollars),then the growth rate of real GDP is

Accepted Answer

A) 0%. 
B) 0)5%. 
C) 5%. 
D) 50%. 
A) 0%. 
B) 0)5%. 
C) 5%. 
D) 50%.

Question 9

In the mid-to-late 1980s,the United States had "twin deficits" because both ________ and ________ were negative.

Accepted Answer

A) government saving; private saving 
B) saving; investment 
C) the current account; investment 
D) government saving; the current account 
A) government saving; private saving 
B) saving; investment 
C) the current account; investment 
D) government saving; the current account

Question 10

Monica grows coconuts and catches fish.Last year she harvested 1500 coconuts and 600 fish.She values one fish as having a worth of three coconuts.She gave Rachel 300 coconuts and 100 fish for helping her to harvest coconuts and catch fish,all of which were consumed by Rachel.Monica consumed the remaining fish and coconuts.In terms of fish,total consumption by both Monica and Rachel would equal

Accepted Answer

A) 700 fish. 
B) 900 fish. 
C) 1100 fish. 
D) 2700 fish. 
A) 700 fish. 
B) 900 fish. 
C) 1100 fish. 
D) 2700 fish.

Question 11

Nominal government purchases were $2226.2 billion in 2008 and rose to $2372.8 billion in 2009.Real government purchases were $1940.6 for 2008 and $1958.0 for 2009,where 2005 was the base year.Calculate the percent change in the chain-weight price index for government purchases (rounded to the nearest percentage point)from 2008 to 2009.

Accepted Answer

A) 2% 
B) 4% 
C) 6% 
D) 8% 
A) 2% 
B) 4% 
C) 6% 
D) 8%

Question 12

Business fixed investment includes purchases of

Accepted Answer

A) capital equipment and structures. 
B) land and energy. 
C) long-term bonds. 
D) inventories. 
A) capital equipment and structures. 
B) land and energy. 
C) long-term bonds. 
D) inventories.

Question 13

In one year in the country of Countem,workers earned $4150,proprietor's income was $392,rental income was $20,corporate profits were $683,net interest was $228,taxes on production and imports were $329,business current transfer payments were $12,the current surplus of government enterprises was $3,statistical discrepancy was $28,consumption of fixed capital was $882,factor income received from the rest of the world was $331,and payments of factor income to the rest of the world was $623.Based on these data,compute national income,net national product,gross national product,and gross domestic product.

Accepted Answer

The first eight items sum to national in

Question 14

If C = $250,I = $50,G = $60,NX =- $20,and NFP = $5,how much is GNP?

Accepted Answer

A) $365 
B) $335 
C) $340 
D) $345 
A) $365 
B) $335 
C) $340 
D) $345

Question 15

If the price index last year was 1.0 and today it is 1.4,what is the inflation rate over this period?

Accepted Answer

A) -4% 
B) 1)4% 
C) 4% 
D) 40% 
A) -4% 
B) 1)4% 
C) 4% 
D) 40%

Question 16

Marvin's Metal Company produces screws that it sells to Ford,which uses the screws as a component of its cars.In the national income accounts,the screws are classified as

Accepted Answer

A) inventory. 
B) final goods. 
C) capital goods. 
D) intermediate goods. 
A) inventory. 
B) final goods. 
C) capital goods. 
D) intermediate goods.

Question 17

Nominal gross private domestic investment was $1888.0 billion in 2008 and rose to $2057.4 billion in 2009.The chain-weight price index for gross private domestic investment was 106.6 for 2008 and 110.3 for 2009,where 2005 was the base year.Calculate the percent change in real gross private domestic investment (rounded to the nearest percentage point)from 2008 to 2009.

Accepted Answer

A) 1% 
B) 3% 
C) 4% 
D) 5% 
A) 1% 
B) 3% 
C) 4% 
D) 5%

Question 18

Suppose that national saving is $1456 billion,investment is $1945 billion,and private saving is $1590 billion.How much is the current account balance?

Accepted Answer

A) $489 billion 
B) $221 billion 
C) -$221 billion 
D) -$489 billion 
A) $489 billion 
B) $221 billion 
C) -$221 billion 
D) -$489 billion

Question 19

The country of Old Jersey produces milk and butter,and it has published the following macroeconomic data,where quantities are in gallons and prices are dollars per gallon.
 
Between Year 1 and Year 2,the percent change in real GDP (based on Year 1 as a base year)was

Accepted Answer

A) 58%. 
B) 60%. 
C) 130%. 
D) 190%. 
A) 58%. 
B) 60%. 
C) 130%. 
D) 190%.

Question 20

The government budget surplus equals

Accepted Answer

A) government purchases plus transfers. 
B) government receipts minus government outlays. 
C) government purchases minus net receipts. 
D) government purchases minus transfers. 
A) government purchases plus transfers. 
B) government receipts minus government outlays. 
C) government purchases minus net receipts. 
D) government purchases minus transfers.

Capital goods are

GDP differs from GNP because

The uses-of-saving identity shows that if the government budget deficit rises,then one of the following must happen.

Inventories include each of the following except

The Boskin Commission concluded that the CPI overstates increases in the cost of living by ________ percentage point(s)per year.

If an American construction company built a road in Kuwait,this activity would be

The Bigdrill company drills for oil,which it sells for $200 million to the Bigoil company to be made into gas.The Bigoil company's gas is sold for a total of $600 million.What is the total contribution to the country's GDP from companies Bigdrill and Bigoil?

If nominal GDP for 2009 is $6400 billion and real GDP for 2010 is $6720 billion (in 2005 dollars),then the growth rate of real GDP is

In the mid-to-late 1980s,the United States had "twin deficits" because both and were negative.

Business fixed investment includes purchases of

If C = $250,I = $50,G = $60,NX =- $20,and NFP = $5,how much is GNP?

If the price index last year was 1.0 and today it is 1.4,what is the inflation rate over this period?

Marvin's Metal Company produces screws that it sells to Ford,which uses the screws as a component of its cars.In the national income accounts,the screws are classified as

Suppose that national saving is $1456 billion,investment is $1945 billion,and private saving is $1590 billion.How much is the current account balance?

The country of Old Jersey produces milk and butter,and it has published the following macroeconomic data,where quantities are in gallons and prices are dollars per gallon. Between Year 1 and Year 2,the percent change in real GDP (based on Year 1 as a base year)was

The government budget surplus equals

Introduction to Macroeconomics

Productivity, Output, and Employment

Consumption, Saving, and Investment

Saving and Investment in the Open Economy

Long-Run Economic Growth

The Asset Market, Money, and Prices

Business Cycles

The IS-LM/AD-AS Model

Classical Business Cycle Analysis

Keynesianism: The Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates,Business Cycles,and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

Exam 2: The Measurement and Structure of the National Economy

Capital goods are

GDP differs from GNP because

The uses-of-saving identity shows that if the government budget deficit rises,then one of the following must happen.

Inventories include each of the following except

The Boskin Commission concluded that the CPI overstates increases in the cost of living by ________ percentage point(s)per year.

If an American construction company built a road in Kuwait,this activity would be

The Bigdrill company drills for oil,which it sells for $200 million to the Bigoil company to be made into gas.The Bigoil company's gas is sold for a total of $600 million.What is the total contribution to the country's GDP from companies Bigdrill and Bigoil?

If nominal GDP for 2009 is $6400 billion and real GDP for 2010 is $6720 billion (in 2005 dollars),then the growth rate of real GDP is

In the mid-to-late 1980s,the United States had "twin deficits" because both ________ and ________ were negative.

Business fixed investment includes purchases of

If C = $250,I = $50,G = $60,NX =- $20,and NFP = $5,how much is GNP?

If the price index last year was 1.0 and today it is 1.4,what is the inflation rate over this period?

Marvin's Metal Company produces screws that it sells to Ford,which uses the screws as a component of its cars.In the national income accounts,the screws are classified as

Suppose that national saving is $1456 billion,investment is $1945 billion,and private saving is $1590 billion.How much is the current account balance?

The country of Old Jersey produces milk and butter,and it has published the following macroeconomic data,where quantities are in gallons and prices are dollars per gallon. Between Year 1 and Year 2,the percent change in real GDP (based on Year 1 as a base year)was

The government budget surplus equals

Introduction to Macroeconomics

Productivity, Output, and Employment

Consumption, Saving, and Investment

Saving and Investment in the Open Economy

Long-Run Economic Growth

The Asset Market, Money, and Prices

Business Cycles

The IS-LM/AD-AS Model

Classical Business Cycle Analysis

Keynesianism: The Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates,Business Cycles,and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

In the mid-to-late 1980s,the United States had "twin deficits" because both and were negative.